US Treasury Secretary Janet Yellen has reaffirmed the importance of ensuring that bitcoin and other cryptocurrencies are not used for illegal financing. In addition, she emphasizes the importance of regulating institutions that trade in bitcoin.
Janet Yellen claims that it is important to make sure that Bitcoin is not used for illegal financing
In an interview with CNBC on Thursday, US Treasury Secretary Janet Yellen answered some questions regarding the regulation of bitcoin and cryptocurrency.
Yellen said she views bitcoin as a “very speculative asset”, highlighting the high levels of volatility over the past year. The Treasury Secretary answered a question about whether bitcoin and cryptocurrencies should be regulated:
I think it is important to make sure that it is not used as a vehicle for illegal transactions and that there is investor protection. And so the regulation of institutions that trade in bitcoin, to make sure that they fulfill their regulatory responsibilities, is definitely important.
The price of bitcoin peaked again on Friday, pushing its market capitalization above $ 1 trillion. At the time of writing, the BTC price stands at $ 54,757.
This is not the first time Yellen has talked about cryptocurrencies fueling illegal transactions. At her confirmation hearing in the Senate in January, she said: ‘Cryptocurrencies are of particular concern. I think a lot is used … mainly for illegal financing. “After that, she clarified her position and promised to implement ‘effective’ crypto-regulation together with other federal regulators. Last week, she said the misuse of cryptocurrencies was a growing problem, reiterating that they were “used to launder the profits of online drug dealers” and “were a tool to finance terrorism.”
Rich Dad Poor Dad author Robert Kiyosaki on Thursday commented on Yellen’s comments on bitcoin:
Sec Treasury Yellen has just said on CNBC that bitcoin is used in criminal activities. Give me a chance. And neither does the US dollar. Who can believe this academic elite? Do they think we are so naive? Definitely buy more gold, silver, bitcoin.
A growing number of large corporations have adopted bitcoin. The cryptocurrency recently got a big boost when electric car company Elon Musk, Tesla, revealed that it has bought $ 1.5 billion BTC and will soon accept the cryptocurrency as a means of payment for its products. Mastercard has also announced that it will allow certain cryptocurrencies on its network, and the country’s oldest bank, BNY Mellon, has introduced a crypto unit to provide bitcoin services. In addition, the US city of Miami is trying to become a bitcoin hub.
Meanwhile, Wyoming U.S. bitcoin senator Cynthia Lummis is on a mission to convince Yellen that bitcoin is a great stock value. Lummis said she met Yellen and believes she has an open mind on this subject. However, the senator still believes it will take a while to convince the treasury secretary.
What do you think of Yellen’s bitcoin comments? Let us know in the comments below.
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